Monday, November 1, 2010

OCBC 3Q net profit S$570m, up 27% on-yr

KUALA LUMPUR: Singapore's Oversea-Chinese Banking Corporation Ltd (OCBC Bank) reported net profit of S$570 million for the third quarter of 2010 (3Q10), up 27% from S$450 million a year ago.

'Earnings growth was underpinned by higher net interest income, strong fee and commission income, and lower credit losses. The 3Q10 results included the consolidation of Bank of Singapore, acquired in January this year,' it said on Monday, Nov 1.

OCBC said net interest income increased 10% on-year to S$754 million, driven by asset growth which more than offset the impact of lower interest margins.

It reported that loans grew by 29% on-year, and 7% from the previous quarter, with broad-based increases across all geographies and segments.

Non-interest income was S$621 million, an increase of 59% as the prior year period included a one-time loss of S$213 million (S$154 million after tax and non-controlling interests) from the redemption of the GreatLink Choice (GLC) policies by Great Eastern Holdings, which was reflected under 'other income'.

Fee and commission income surged 37% to a record S$260 million, led by wealth management income, which more than doubled, investment banking, loan-related and trade-related income. Insurance income, trading income and investment gains were lower, as the prior year results were boosted by the strong market recovery from the global financial crisis.

Compared to 2Q10, net profit increased by a robust 13%. Net interest income grew 5% on higher asset volumes and stable margins.


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